I need help describing these scenarios. For each of the following scenarios, determine which market model best describes the scenario. Then identify the number of firms, the type of product,and the ease with which new firms can enter the market under this market structure.ScenarioA chain of coffee shops has gained a largemarket share in a big city because customersfeel its coffee tastes better than itscompetitors' coffee.Dozens of companies produce plain whitesocks. The standard technology forproducing socks is widely known andavailable to anyone who wants to enter thebusiness.Four Internet providers offer similar servicesto almost everyone in the city. Any newcompany would have to engage in a pricewar with the existing companies.Only one pharmaceutical company has agovernment patent to sell an experimentaldrug.Number ofFirmsType of ProductEntryMarket ModelOligopolyMonopolyMonopolistic competitionPerfect competition

There are four major types of market models, each with unique characteristics that influence…

For each of the following scenarios, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure.

For each of the following scenarios, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I need help describing these scenarios.

For each of the following scenarios, determine which market model best describes the scenario. Then identify the number of firms, the type of product,
and the ease with which new firms can enter the market under this market structure.
Scenario
A chain of coffee shops has gained a large
market share in a big city because customers
feel its coffee tastes better than its
competitors' coffee.
Dozens of companies produce plain white
socks. The standard technology for
producing socks is widely known and
available to anyone who wants to enter the
business.
Four Internet providers offer similar services
to almost everyone in the city. Any new
company would have to engage in a price
war with the existing companies.
Only one pharmaceutical company has a
government patent to sell an experimental
drug.
Number of
Firms
Type of Product
Entry
Market Model
Oligopoly
Monopoly
Monopolistic competition
Perfect competition

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